Following a slump at the end of the summer, the amount of work on builders’ books has bounced back. On October 15 the Associated Builder and Contractors released their analysis of recent government data showing a remarkable rebound in construction backlog.
Backlog increased in every region except the Northeast. This all comes after the Federal Reserve lowered the interest rate by a half-point.
The positive momentum this month was largely dependent on company size. Firms making less than $30 million a year added more work at a similar rate to those posting revenue of $100 million or more. The mid-sized contractors reporting within the $30-50 million range stayed even. Despite there being no declines, contractor backlog and confidence still remains lower than it was a year ago. It’s clear the effects of high interest rates continue to disrupt the construction industry across the board.
Source: https://www.constructiondive.com/news/construction-backlog-rebounds-rate-cut/730100/